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News: ABB reported stellar set of Q1CY24 results wherein company exceeded expectations across all parameters. Revenues grew by 28% YoY to Rs 3080 crore. The growth in revenues was mainly driven by the electrification division which grew by 30% YoY and process automation, up 73% YoY. Projects and services revenues comprised of 71% and 16% of the overall revenues, respectively. Order inflows grew by 15% YoY at Rs 3607 crore, which mainly came in from the electrification and process automation. Order backlog grew by 25% YoY at Rs 8935 crore. Strong expansion of 390 bps in gross margins was on account of better service and export orders and execution of high margin orders. This resulted into EBITDA coming in at 18.3% YoY. Consequently, PAT came in at Rs 459 crore, up 87% YoY.
Views: Q1CY24 turned out to be record quarters for ABB and given the growth in backlog and capex environment, we expect the company to report strong performance over the next 3-5 years. Any significant correction in the stock should be used as a buying opportunity.
Impact: Positive